Author Topic: Borrower Fraud  (Read 2981 times)

Skeptical

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Borrower Fraud
« on: August 19, 2017, 10:08:26 AM »
I am new to P2P lending and I am cautiously putting my toe in the water. I invested in a loan that had a FICO score around 740 and this person supposedly made a six-figure salary. This borrower did not even attempt to make the first payment. There appeared to be no good faith on his part. The only thing that makes sense to me is that this borrower NEVER intended to make a payment. If someone goes belly-up in a year or two, that makes sense to me. But never paying your first month! So far all of my other notes have paid. I know you will have defaults but this smacks of willful borrower fraud to me.

Michael

SeanMCA

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Re: Borrower Fraud
« Reply #1 on: August 19, 2017, 12:32:39 PM »
It probably is. Lending Club calls borrowers who do this "straight rollers"

It's annoying but unfortunately it's part of the game. Hopefully it only happens to very very few of your notes.
I'm a merchant cash advance veteran exploring the p2p lending waters.

AnilG

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Re: Borrower Fraud
« Reply #2 on: August 19, 2017, 12:46:20 PM »
If no payment was made on the loan, you may want to reach out to LC customer support and claim loan was fraudulent. LC might decide to investigate further and potentially refund lenders.
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EmilyFoxSeaton

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Re: Borrower Fraud
« Reply #3 on: August 20, 2017, 01:45:41 PM »
If no payment was made on the loan, you may want to reach out to LC customer support and claim loan was fraudulent. LC might decide to investigate further and potentially refund lenders.

Yes actually I believe this is illegal. So if Lending Club wanted to bring it to the authorities... they could.  Especially if this is happening often. I am concerned that these people who are getting these loans are using identity fraud.

Also though, are you sure this is someone not paying? Could it be a technical issue? Like they set up a payment to come out of an account that they closed and it was a mistake?

sensij

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Re: Borrower Fraud
« Reply #4 on: August 25, 2017, 02:10:21 PM »
I'm about 3500 notes into my Lending Club experience and ran into my first case of acknowledged borrower fraud.  I noticed a Foliofn transaction last month and brought it up during a check-in call from investor services today (I'm not yet registered with Foliofn).  Here was the explanation:

Quote
In regards to the Traded Note on your Roth IRA, Loan ID 108619360 was Fraudulently issued. LendingClub was to repurchase the Note from you at Principal Outstanding ($25.00) + Accrued Interest, which was $0.41

LendingClub actually bought the Note at a much higher price, $58.04 which is why you show a Note traded at 58.04. You also have a withdrawal of $32.63 which was LendingClub debiting your account the incorrect premium LendingClub purchased your Note at.

SeanMCA

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Re: Borrower Fraud
« Reply #5 on: August 25, 2017, 08:56:09 PM »
what's a check-in call?
I'm a merchant cash advance veteran exploring the p2p lending waters.

sensij

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Re: Borrower Fraud
« Reply #6 on: August 28, 2017, 12:49:48 PM »
what's a check-in call?

A call from an investment services rep to see if I am liking the platform, to let me know that the IRA bonus had been full deposited, and ask for feedback.  He asked if I had any questions about the "5 Key Things" email that was discussed in another thread.